Cambridge, southwestern Nebraska | I agree with you 100%. Pay 2.5% if you can return 8%. We had some friends that decided to refinance their house so it could be paid off faster. I believe they had been listening to Dave's radio show. Then they had nothing to live on and have been barely getting by. Now they just want to sell their home and be out of the mess. They would have been better off just staying the course and taking a few more years to pay off. They had a pretty good rate. By the time they paid refinance fees and the interest rate changed they were not any better off and then faced with a larger payment they couldn't afford.
(I didn't say they are the best money managers). |
Dave Ramsey coarse
